AC Energy Philippines won best bids at Meralco’s Competitive Selection Process (CSP) held September 9 and 11. The company was awarded supply agreements for 200 MW baseload and 110 MW mid-merit of Meralco’s supply demand for 10 and 5 years respectively.
“We now have 310 MW of contracted capacity at a solid price — a critical component for AC Energy Philippines’ turnaround and growth strategy,” said President and CEO Eric Francia.
This puts AC Energy Philippines in a better position in achieving a positive bottom line, which was mentioned during its Annual Shareholders’ Meeting as one of the company’s priorities for 2020.
Several GenCos submitted their bid for Meralco’s 1200 MW brownfield capacity and 500 MW mid-merit capacity, with the awarded prices significantly lower than the DUs current generation cost on the average. Once implemented starting December of this year, the new supply agreements could lead to savings of more than P9 billion annually and is expected to reduce costs for consumers.